Return on Investment

Return on Investment field

A calculation of the expected return or benefit over and above the investment costs of a project or portfolio expressed as a percentage.

Calculated as the Net Present Value divided by the Total Spending Plan (Present Value).

For example, a project is expected to cost 1.0 million dollars with a total benefit of 1.2 million dollars. Its Net Present Value is $200,000. The Return on Investment is 20%.